Palm oil hits 5-week high as dry weather stresses U.S. soybeans

Palm oil contract prices reached the highest level in five weeks in response to concerns that continuing dry weather could negatively impact the U.S. soybean crop.
"The current weather conditions in the U.S., which is driving soybean oil prices up, will have a positive spillover effect on palm oil prices because soybean oil is a close substitute to palm oil,” said analyst Sim Han Qiang of Phillip Futures Pte. "When soybean oil prices increase, it tends to put buying pressure on crude palm oil."